Oil Prices Jump Near $100 per Barrel After Reports of Tanker Attacks in Iraqi Waters

Oil prices climbed sharply during Asian trading on Thursday, approaching the key $100 per barrel level after reports emerged that two international oil tankers were attacked in Iraqi waters. The developments intensified market concerns about supply disruptions amid the continuing conflict between the United States, Israel and Iran. 

Brent crude futures surged more than 7% at the open to reach $99.54 per barrel before trimming gains to trade at $98.23 per barrel. Meanwhile, West Texas Intermediate (WTI) crude futures rose around 6.9% to $92.04 per barrel. 

Tanker Attacks Raise Supply Disruption Fears 

According to media reports, 2 international oil tankers were attacked in the northern Persian Gulf near Iraq and Kuwait. Videos circulating online showed the vessels engulfed in flames, while Iraqi media outlets attributed the strikes to Iran. 

The incident marks the latest escalation in the conflict involving Iran, which entered its thirteenth consecutive day on Thursday. The attacks have raised concerns about potential disruptions to global oil supply chains, particularly in the Middle East, a region that plays a crucial role in global energy markets. 

Iran has also warned that crude shipments may be blocked through the Strait of Hormuz, one of the world’s most important oil transit routes. The strategic waterway accounts for roughly 20% of global oil supplies, making any disruption a significant risk to international energy markets. 

Strategic Reserves May Help Offset Supply Risks 

Despite the sharp rise in oil prices, gains were partially limited by efforts from major economies to mitigate potential supply shocks. Reports indicated that the International Energy Agency is preparing to release a record 400 million barrels of oil from strategic reserves to stabilise markets. 

In addition, U.S. President Donald Trump stated that the United States will release approximately 172 million barrels of oil from the Strategic Petroleum Reserve in an effort to ease pressure on global energy supplies resulting from the Iran conflict. 

Oil prices had surged to nearly $120 per barrel earlier this week as tensions escalated, reflecting heightened geopolitical risk in the energy market. 

Read More: US Waiver Sparks Fresh Russian Oil Purchases by Indian Refiners! 

Conclusion 

Oil markets remain highly sensitive to geopolitical developments in the Middle East. With tanker attacks raising fresh supply concerns and governments considering strategic reserve releases, crude prices are likely to remain volatile as traders assess the balance between supply disruptions and emergency supply measures. 

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